10/26/2011 10:52 AM
Dell Computer has long been a leader in distributing products via a 'direct'
channel between Dell and customers. Recently, the company has been moving into
conventional two step distribution channels. After reading this
Business Week article about Dell's initiative, answer these questions:
What pricing-related conflicts are
likely as Dell
tries to distribute products through both the direct and two step channels?
Can Dell easily transfer its build-to-order approach
for making PCs for the direct channel to the two step channel?
If you were advising Michael Dell on downstream
distribution strategy, what would you advise here?
Submit a one page memo with your answers.